General

Taxpayers may find themselves in a position where they need to make a complaint to HMRC. Complaints can relate to many different issues such as unreasonable delays, mistakes and poor treatment by HMRC’s staff. Note, there is a separate procedure to be followed by taxpayers that disagree with a decision of HMRC. In such cases the review and appeals process should be followed.

HMRC operates a formal two-tier complaints process.  Tier 1 is the first attempt to resolve a complaint and HMRC aims to resolve as many complaints as possible at this stage. Taxpayers that wish to make a complaint should in the first instance usually write or speak to the person or office they have been dealing with.

If the response is unsatisfactory, a further request can be made for the complaint to be looked at again by a different complaints handler who will take a second look at the complaint and then provide a final response. This is known as a Tier 2 complaint and is HMRC’s second and final review.

Taxpayers that are still unhappy with the response, can ask the Independent Adjudicator to look into the matter. The Adjudicator is completely independent of the HMRC. If they are unhappy with the Independent Adjudicator’s decision it is possible to contact the Parliamentary and Health Service Ombudsman via their MP.

Fraudsters have been blocked from using HMRC’s most used helpline numbers after the introduction of new defensive controls. These fraudsters had been able to make calls to taxpayers across the UK which appeared to be coming from HMRC by mimicking helpline numbers. These fraudsters are usually operating as part of large criminal gangs with deep pockets and cutting-edge technological to target taxpayers.

This scam worked as taxpayers would receive calls and, on checking the numbers online, would find they appeared to belong to HMRC. This led many people to believe the fake calls were real and thus enabled fraud. In the last year alone, HMRC received over 100,000 phone scam reports.

The new controls, created in partnership with the telecommunications industry and Ofcom, will prevent spoofing of HMRC’s most used inbound helpline numbers and are the first to be used by a government department in the UK. This does not mean that the fraudsters will be completely stopped but does mean they will have to use less credible numbers that should be easier to spot.

HMRC also confirms that they will only ever call about a debt that has already been the subject of a letter from HMRC or that you have been otherwise notified. You will also no longer be required to read aloud your card details to HMRC over the phone.

The TV licence fee has not been payable by those aged 75 or over since 2001. During 2015, the government reached an agreement with the BBC as part of the last charter renewal that it will take on the cost of free television licences for over-75s by 31 May 2020 as part of the fee settlement. 

The BBC estimated that the change would have reduced their licence fee income by around £745m a year, a fifth of the BBC’s annual budget. The BBC board has now announced that following a consultation period, free TV Licences for most over 75s are to be scrapped. Under the new rules, only low-income households where one person receives the pension credit benefit will remain eligible for a free licence. In these cases, the BBC will foot the bill.

If you are over 75 and have a free over 75 licence, you will be covered until 31 May 2020. The BBC has said they will be writing to all free over 75 licence holders in good time before 31 May 2020 to let them know how they may be affected and what they will need to do. Once the new rules come into effect, there will be penalties for non-compliance and even those aged over 75 and living in a residential care home, supported housing or sheltered accommodation will be required to hold a licence.

This announcement by the BBC and the government’s part in the change has been criticised by many charities working with the elderly. This includes Age UK, who have launched a campaign to have the government take back responsibility for funding free TV licences for everyone over 75.

HMRC has issued an updated version of their online guidance on Genuine HMRC contact and recognising phishing emails and texts. The guidance provides a current list of genuine messages from HMRC. This includes email messages, text messages and telephone contacts from HMRC.

The latest updates on the list includes confirmation that HMRC is contacting some taxpayers by email who opened a Tax-Free Childcare account but no longer use it. The research will help HMRC to understand how best to support working families with their childcare costs.

HMRC is also working with independent research company IFF Research to help understand barriers to signing up for and using Tax-Free Childcare. You may get a letter from IFF Research telling you about the research and an invitation by telephone to take part. Participation is voluntary.

Although all these communications are genuine, taxpayers should still be wary of receiving messages that are purported to come from HMRC. Fake email and text messages can appear to be genuine but clicking on a link from these messages can result in personal information being compromised and the possibility of computer viruses affecting your computer or smartphone.

If you are unsure as to the validity of any message it should not be opened until the sender can be verified. The validity of letters from HMRC can also be checked by contacting HMRC directly by telephone to confirm if a letter is genuine.

The government has announced new plans to crackdown on high pressure and bullying tactics to sell pre paid funeral plans. These tactics are often used to target those who are old and vulnerable and unaware exactly what they are buying. In some cases, the funeral plans are sold with misleading promises and to maximise the salesperson's commission.

Demand for funeral plans has grown significantly over recent years and last year over 177,000 plans were sold and cost on average between £2,500 and £5,000. A regulator does currently exist to oversee these plans, which operate on a purely voluntary basis and firms are not required to sign up to the rules. Under new proposals published earlier this month the regulation of the sector would be moved to the Financial Conduct Authority (FCA).

The FCA will seek to ensure that funeral plan providers are clear and fair in their treatment of customers and will also offer access to the Financial Ombudsman Service, enhancing consumer protection. Under the new plans, anyone found breaching the regulations can have their authorisation revoked, face fines and even criminal charges. The consultation on the proposed changes is open for comment until 25 August 2019.

If you are owed money by an individual or business, there is a procedure you can use called making a court claim. This was more commonly referred to as taking someone to a 'small claims court'.

Before making a claim, you should try to contact the person or organisation to try and resolve the issue by discussion or by using a specialist mediation service.

If this is unsuccessful and you are making a court claim for a fixed amount, this can be done online or by paper. An online claim can be made at www.gov.uk/make-money-claim. If you are making a claim for an unspecified amount you must download and complete the N1 claim form.

Paper forms need to be sent to the following address:

County Court Money Claims Centre
PO Box 527
Salford
M5 0BY

There are court fees to pay when making a claim. The amount of the fee depends on the size of the claim and whether the claim is made online or by paper. The fees can range from £25 to £10,000.

You may be required to go to court if the person or business you are claiming from denies owing you the money. If you are successful in obtaining judgement, but do not get paid, there are further steps that can be taken including the use of bailiffs to try and get what you are owed.

There are a number of options open to taxpayers who disagree with a tax decision issued by HMRC. As a first step, it may be possible to make an appeal against a tax decision. There is normally a 30-day deadline for making a claim, so time is of the essence. HMRC will then carry out a review, usually by using HMRC officers that were not involved in the original decision. A response to an appeal is usually made within 45 days but can take longer for complex issues.

In certain cases, it is possible to appeal against penalties on the grounds of having what is known as a 'reasonable excuse'.

HMRC’s guidance lists the following examples of what may count as a reasonable excuse:

• your partner or another close relative died shortly before the tax return or payment deadline
• you had an unexpected stay in hospital that prevented you from dealing with your tax affairs
• you had a serious or life-threatening illness
• your computer or software failed just before or while you were preparing your online return
• service issues with HMRC online services
• a fire, flood or theft prevented you from completing your tax return
• postal delays that you couldn’t have predicted
• delays related to a disability you have

However, not receiving a reminder, relying on someone else or making a mistake are amongst the reasons not counted as reasonable excuses.

HMRC continues to warn of the ever-present problem of fraudulent phishing emails. The emails typically look to obtain taxpayers personal and or financial information such as passwords, credit card or bank account details. The phishing emails often include a link to a bogus website encouraging the recipient to enter their personal details.

As with other fraudulent emails, these are not genuine HMRC messages and should be disregarded. HMRC never sends notifications by email about tax rebates or refunds.

The phishing emails are being sent from global sources, and while HMRC continues to help close down illegal sites, the emails still continue as the fraudsters change what they are doing. These scams use bogus e-mails and websites to trick taxpayers.

Any of our readers who are unsure as to the authenticity of any email purporting to be from HMRC, should avoid clicking on any links until satisfied that the email is legitimate. HMRC asks that all HMRC related phishing emails and bogus text messages are reported. The emails can be sent to phishing@hmrc.gsi.gov.uk and then deleted.

The Help to Save scheme for people on low incomes was launched in September 2018. The scheme allows those in work entitled to Working Tax Credit and in receipt of Working Tax Credits or Child Tax Credits, to save and receive a 50% government bonus.

The scheme is also open to UK residents who are claiming Universal Credit and have a household or individual income of at least £569.22 for their last monthly assessment period. Payments from Universal Credit are not considered to be part of household income.

Payments under the scheme can be made by standing order on a weekly, fortnightly, or monthly basis and one-off payments by debit card are also possible. Account holders will then be able to continue saving under the scheme for a further 2 years and receive another bonus. This could see those on low incomes receive a bonus of up to £1,200 on maximum savings of £2,400 for 4 years from the date the account is opened. After the 4 years, the Help to Save account will be closed and savers will not be able to reopen it or open another Help to Save account. The account balances are expected to be rolled over into successor accounts.

There are no limits on how the money used can be spent but it is hoped that the money will be saved for urgent costs. Money paid into the account can be withdrawn at any time, but this could affect the size of the bonus payment. HMRC has also launched a new tool in the HMRC app that lets savers set their own savings goals and personal reminders, to keep on track and maximise bonuses using the scheme.

The current Governor of the Bank of England, Mark Carney, will step down from his role on 31 January 2020. Mr Carney had been due to step down earlier but agreed to stay in his role to help support a smooth exit from the European Union. Although this has not yet happened, the Chancellor has confirmed that Mr Carney will step down in January 2020 as planned, and the search for a new Governor of the Bank of England has been launched.

The Chancellor of the Exchequer, Philip Hammond, said:

'In today’s rapidly evolving economy the role of Governor is more important than ever. Finding a candidate with the right skills and experience to lead the Bank of England is vital for ensuring the continuing strength of our economy and for maintaining the UK’s position as a leading global financial centre.'

The appointment of Mr Carney was the first time the position of Governor was held by a foreigner since the Bank of England was founded in 1694. The recruitment net for the next Governor has been designed to ensure that the most qualified candidate is appointed from the broadest possible pool of applicants.

The new role has been advertised on the Cabinet Office public appointments website and potential candidates have been informed that they should be able to commit to an eight-year term.